Federal Tax, Tax

Tax-Exempt Organizations: How to Guard Your Tax-Exempt Status

Tax-exempt organizations enjoy favorable federal tax status, but they must guard it by following tax law and IRS regulations. If a group loses tax-exempt status, its income may be subject to federal tax and it can no longer receive tax-deductible donations. Organizations that fail to file Form 990 for three consecutive years may face automatic revocation. Recently, the IRS sent revocation Letter Rulings to groups that didn’t serve the public interest. One group operated for the primary purpose of providing non-exempt recreation to its members (LTR 202403013). Another was limited to the activities of a family reunion (LTR 202403016) and another sold services to the public (LTR 202403014). Contact us with questions. © 2024